Apple Cuts LCD Prices in Bid To Expand Market Share

The new LCD monitor line includes the 30-inch Apple Cinema HD Display, a professional-quality, active-matrix LCD with 2560-by-1600 pixel resolution. Apple said the 23-inch Apple Cinema HD Display and 20-inch Cinema Display provide creative professionals and "prosumers" with the highest quality flat panel displays in the industry.

The company also dropped the price of its 20-inch Cinema Display from US$999 to $799.

Battling on the Playground

Can Apple really compete against Dell, unit for unit, in an LCD war? AnanaTech reviewer Kristopher Kybricki has described Apple's Cinema Display as "a phenomenally beautiful monitor" but he also gave Dell the ultimate victory in a side-by-side comparison this week.

Technology Business Research analyst Tim Deal told MacNewsWorld that despite Apple's obvious hopes to leverage the iPod's success to achieve additional unit volume through the sale of lower-priced PCs, it is not likely that Apple will ever achieve the unit volume that Dell boasts.

However, Deal said Apple would at least like to reclaim its leading market share in the educational arena.

"Apple has a long-standing relationship with the education market. Dell came along with very aggressive pricing displaced Apple as the leader," Deal said. "That battle still continues."

Fighting Fire with Fire

And now, Apple appears to be fighting fire with fire. Its price cut yesterday, according to analysts, is one part of the company's new strategy to expand beyond its loyal customer base.

"The enormous success of the iPod demystified the Apple brand for a number of Windows users," Deal said. "Apple has long charged premium prices for its products and has been a boutique player in the computer industry. Now Apple is trying to become more price-aggressive to increase unit volume outside of its core vertical market."